
SRange Contraction Indicator
Platform: MT5 Type: Momentum Last update: September 24, 2024The SRange Contraction indicator calculates the ratio between today’s and the previous day’s ranges and displays these values.
When the previous day’s range is tighter than the day before, this could suggest a potential explosive momentum today according to Toby Crabel.
An alert pointer (red dot) gets marked along with the narrow range points (under the designated value).
Let’s take a closer look at the settings inputs below.
Threshold – defines the previous day’s range threshold;
Show Small Range – defines whether to display narrow range signals or not (Yes/No);
Calculation period mode – defines the period mode calculation;
Current – calculations on the current bar;
Previous – calculations on the previous bar.
The formula for the SRange Contraction indicator:
The calculations of the SRange Contraction indicator are based on the following formula:
RC = 100.0 * (High[Period] – Low[Period]) / (High[Period+1] – Low[Period+1])
RC < Threshold: Breakout = RC